Market analysts say Ether (ETH) still faces “downside pressure” that could trigger another sell-off as traders focus on support at $1,800.
Analysts have highlighted several reasons for Ether’s potential to drop lower, including an elevated estimated leverage ratio and positive funding rates amid a “weakening price structure,” according to CryptoQuant analyst PelinayPA.
Ether’s estimated leverage ratio remains relatively elevated at around 0.74. The funding rate has stayed mostly positive since mid-April, meaning long positions still dominate. Meanwhile, the RSI is near the oversold zone at 31 and has not yet produced a convincing recovery signal.
“Leverage remains elevated and long positioning is still dominant, yet price continues to struggle as the RSI reflects weakening momentum,” PelinayPA said, adding: “Overall this combination suggests that short term downside pressure in the ETH market still remains the dominant structure.”
Under normal market conditions, rising leverage and increasing funding rates are supported by strong price expansion. However, in this case, leverage remains high while price continues to record lower lows. Fellow analyst Amr Taha noted that the Binance cumulative net taker volume fell to around -$744 million, its deepest negative reading since April 2026. This suggests new leverage entered the market while aggressive sellers were still in control, making the setup fragile.
Waning demand is also seen in US-based spot Ether ETFs, which have recorded outflows for thirteen consecutive days totaling $695 million. The $121 million in outflows on Thursday was the largest withdrawal in two weeks.
Ether’s 7% drop over three days has seen it lose the crucial $2,000 support. Traders are now watching the $1,800 demand zone. Analyst Suraj Jha said a good spot buy would be around $1,700-$1,800. A confirmed breakdown below this level could shift the structure bearish and open up continuation to the downside.
Fellow analyst Crypto Patel said Ether’s technical structure remains bearish until reclaiming $3,050. The ETH/USD pair needs to hold $1,750 to keep the long-term bullish case alive. If $1,750 breaks, the next accumulation zone sits at $1,500-$1,400. A daily candlestick drop below $1,750 could trigger another sell-off toward the April 2026 low at $1,550 and later to the 2022 macro low around $1,000.
After losing the psychological support at $2,000, the ETH/USD pair may descend toward the $1,900-$1,750 zone, which buyers are expected to defend aggressively.
